Reducing ambiguity in lotteries: evidence from a field experiment

Conrads, Julian, Reggiani, Tommaso ORCID: https://orcid.org/0000-0002-3134-1049 and Rilke, Rainer Michael 2016. Reducing ambiguity in lotteries: evidence from a field experiment. Applied Economics Letters 23 (3) , pp. 206-211. 10.1080/13504851.2015.1066480

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Abstract

Ambiguity about the chances of winning represents a key aspect in lotteries. By means of a controlled field experiment, we exogenously vary the degree of ambiguity about the winning chances of lotteries organized to incentivize the contribution for a public good. In one treatment, people have been simply informed about the maximum number of potential participants (i.e. the number of lottery tickets released). In a second treatment, this information has been omitted as in all traditional lotteries. Our general finding shows that simply reducing the degree of ambiguity of the lottery leads to a sizable and significant increase (67%) in the participation rate. This result is robust to alternative prize configurations.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Subjects:	H Social Sciences > HB Economic Theory
Publisher:	Taylor & Francis
ISSN:	1350-4851
Date of Acceptance:	11 August 2015
Last Modified:	07 Nov 2022 09:27
URI:	https://orca.cardiff.ac.uk/id/eprint/129206

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